Europe
Bosnia and Herzegovina tax rates 2026
Flat 10% personal and corporate tax, with 17% VAT. Rules differ between the Federation and Republika Srpska entities.
Worldwide (residence-based)
Last verified Some figures indicative
The taxes
| Personal income (top) | 10%Flat 10% in both entities, FBiH and Republika Srpska. |
|---|---|
| Corporate income | 10% |
| Capital gains | Taxed as ordinary income, at 10% |
| VAT / PDV | 17% |
| Dividends (WHT) | 5-10% (0% domestic, 5% in FBiH and 10% in RS for non-residents) |
| Interest (WHT) | 10% |
| Royalties (WHT) | 10% |
| Social security (employee) | ~31% in FBiH, taken from gross pay |
| Social security (employer) | ~10.5% |
| Wealth tax | None |
| Inheritance / estate | Inheritance tax is set at entity or cantonal level, and close family members are often exempt |
| Property tax | Property tax is set at entity or cantonal level |
| Other | The currency, BAM, is pegged to the euro, and tax rules are split between FBiH and RS |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.